Northern Star Resources Ltd · ASX:NST
Northern Star Resources — Denver Gold Forum 2018
26 slides from Northern Star Resources's conference presentation, Sep 24, 2018
Slide 1: Northern Star Resources – Growing Against the Tide
For personal use only Northern Star Resources – Growing Against the Tide Denver Gold Forum 2018
Slide 2: Competent Persons statements
Competent Persons statements The information in this announcement that relates to Mineral Resource estimations, exploration results, data quality and geological interpretations for the Company’s Project areas is based on information compiled by Brook Ekers, a Competent Person who is a Member of the
Slide 3: Pogo mineral resources and mineral reserves – Foreign Estimates
Pogo mineral resources and mineral reserves – Foreign Estimates This presentation has been prepared by Northern Star Resources Limited (ACN 092 832 892) ("Company" or "Northern Star" or "NST"). This presentation includes information which relates to the proposed acquisition of the Pogo mine in Alask
Slide 4: Introduction – An Australian listed gold miner with global scale
Introduction – An Australian listed gold miner with global scale ASX 100, top 25 global gold producer with mines in For personal use only Western Australia and North America(1); 850koz- 900koz(2) per annum at an AISC of A$1,050/oz – A$1,150/oz (US$787- US$862/oz)** Market cap is A$5.6B, with a secto
Slide 5: FY2018 – Key Highlights
FY2018 – Key Highlights For personal use only Financial EPS* of 32.1c up Full year dividend Record Net Profit* Group EBITDA* Performance up 11%. Taking of A$194M A$443M up 4% on 2% on pcp total payments to pcp 9.5c per share Operational Jundee & Record Reserves Acquisition and Performance Kalgoorlie
Slide 6: FY2018 - Strong operational performance
FY2018 - Strong operational performance For personal use only NST has organically grown production and EBITDA at its world class operations in FY2018 Up 21% Gold Sold at both the Jundee and Kalgoorlie Operations combined increased by 21% Combined EBITDA increased by 15% to A$486M FY2018 gold sold 57
Slide 7: Organic growth - the key to our superior returns
Organic growth - the key to our superior returns NST has been able to consistently grow production, resource and reserve life on a per share basis for its For personal use only Shareholders since 2010 and has been our key focus for the past 4 years FY2018 Reserves increased to 4Moz and Resources to
Slide 8: NST continues to lead the global gold sector in ROE and ROIC
NST continues to lead the global gold sector in ROE and ROIC NST generated a sector leading average ROE of 27% in FY18 and has averaged 35% since FY2014 For personal use only Return on Invested Capital of 25% in FY18 and a 4 year average underlying ROIC of 28% Since FY14 NST has returned an average
Slide 9: Organic and Inorganic growth - delivering returns to Shareholders
Organic and Inorganic growth - delivering returns to Shareholders This strategy of balancing organic growth with well executed M+A has generated over A$5.3B of value for Shareholders since NST’s first acquisition in 2010 and only 10% of this value uplift has been from equity raised For personal use
Slide 10: Pogo Gold Mine - Transaction Summary
Pogo Gold Mine - Transaction Summary Acquisition of the high grade 4.1Moz Pogo underground gold mine in Alaska for US$260 million For personal use only Northern Star has agreed to acquire the high grade 4.1Moz Pogo Underground Gold Mine Pogo Site Layout (“Pogo”), located in Alaska, USA, from Sumitom
Slide 11: Transaction Benefits for Northern Star
Transaction Benefits for Northern Star Acquisition immediately transforms Northern Star into a ~900kozpa global gold producer with three Tier-1 For personal use only assets all in Tier-1 jurisdictions ✓ Pogo represents another high grade, low cost, Tier-1 asset in another Tier- Pogo Processing Plant
Slide 12: Proforma Transaction Impact on Northern Star
Proforma Transaction Impact on Northern Star Accretive to Northern Star’s group production, reserves, resources and gold grades For personal use only Reserves (Moz)(1) Reserve Grade (Au g/t)(1) Resources (Moz)(1) Resource Grade (Au g/t)(1) +19% +7% +20% +26% 4.8Moz 4.0Moz 3.8 g/t 4.1 g/t 20.0Moz 3.4
Slide 13: Pogo Acquisition – Consistent with publicly stated Year Vision
Pogo Acquisition – Consistent with publicly stated 3 Year Vision 3 Year Vision A global mid-cap and ASX100 sustainable gold producer focused on superior shareholder value creation For personal use only Establish concentrated centres to maximise Develop functional disciplines and corporate Find new c
Slide 14: Consistent with strategy: Tier-1 assets, Tier-1 locations
Consistent with strategy: Tier-1 assets, Tier-1 locations Globally there are only 17 mines producing over 300kozpa in Tier-1 mining jurisdictions (Australia, US and Canada); For personal use only production is declining in these regions due to a lack of discoveries and significant reserve depletion
Slide 15: Pogo operating and financial performance – past years
Pogo operating and financial performance – past 5 years An established history of consistent high grade gold production at a competitive AISC For personal use only Throughput (kt) and Grade (Au g/t)* Gold Production (koz) and AISC (US$/oz) Recoveries (% Au) 1,000 16 400 882 1000 13.5 13.6 870 849 90
Slide 16: Pogo is in the World-Class Tintina Mineral Belt
Pogo is in the World-Class Tintina Mineral Belt Pogo provides Northern Star exposure to a prolific gold mineral belt with a long history of gold production For personal use only The Tintina Mineral Belt stretches across much of interior Alaska, through the southwestern Yukon The region hosts signifi
Slide 17: Pogo resources and reserves – December 2017
Pogo resources and reserves – 31 December 2017 Mineral reserves and mineral resources have been historically calculated in-line with Canadian NI 43-101 reporting guidelines(1)(2) For personal use only MINERAL RESERVES MINERAL RESOURCES at 31 December 20173 (Exclusive of reserves) at 31 December 2017
Slide 18: Resource and reserve growth potential
Resource and reserve growth potential A significant amount of mineralisation is present outside of the current Pogo resources, there is also considerable mineralisation inside the current resources that hasn’t made it into reserves For personal use only Over the coming 24 months NST will look to inv
Slide 19: Jundee Parallels- Case Study
Jundee Parallels- Case Study NST has identified similarities between Pogo & Jundee, which sets up the value creation template for Pogo For personal use only A Jundee Analogue? Demonstrated Ability to Extend Life at Underground Gold Mines Northern Star has a proven track record of Jundee Historical R
Slide 20: The Northern Star Five-Year Plan
The Northern Star Five-Year Plan Objective: To increase shareholder value by maintaining our industry-leading financial returns while growing free cashflow For personal use only Method: Capitalise on and expand our specialist underground mining and exploration teams Utilise our exceptional balance s
Slide 21: Northern Star Resources
For personal use only Northern Star Resources An Australian Mid Cap gold miner – for global investors Contact Details: Luke Gleeson – Investor Relations +61 8 6188 2100 Email – [email protected] Website – www.nsrltd.com 21
Slide 22: Appendix
Appendix For personal use only Appendix Northern Star Resources Limited An Australian gold miner – for global investors 22
Slide 23: Pogo Acquisition - Diversifying Into Another Tier-1 Mining Jurisdiction
Pogo Acquisition - Diversifying Into Another Tier-1 Mining Jurisdiction Pogo mine provides Northern Star with a third production centre in another Tier-1 mining jurisdiction, For personal use only increasing FY19 group guidance to 850,000-900,000oz at an AISC of A$1,050-1,150/oz (US$787-862/oz)(1) A
Slide 24: Jundee Operations- going from strength to strength
Jundee Operations- going from strength to strength FY2018: 285koz sold, at an For personal use only AISC of A$870/oz(1) Resources up 31% to 4.3Moz and Reserves up 14% to 1.6Moz(1) FY2019: Guidance 280,000- 300,000oz at an AISC of A$895-A$980/oz(2) Plant upgrade delivered 2Mtpa processing capacity Un
Slide 25: Kalgoorlie Operations- SKO acquisition adds capacity
Kalgoorlie Operations- SKO acquisition adds capacity FY2018: 262koz sold at an For personal use only AISC of A$1,174/oz(1) Resources of 8.6Moz (including 3.7Moz at SKO) and Reserves of 2.3Moz up 15%(2) FY2019: Guidance 320,000- 340,000oz at an AISC of A$1,140-A$1,250/oz(2) Production growth options
Slide 26: A$60M Exploration and Drilling Commitment
A$60M Exploration and Drilling Commitment A$60M exploration and drilling commitment for FY2019 For personal use only Core focus is Resource conversion across the major production centres We have the assets, the people, the capacity and the funding to grow our mineral inventory 26